Consider eBay as a company along the value chain. What is their value add within the value chain to a consumer? What about their affiliates? eBay offers their customers a platform to sell and buy goods. They are a, “. . . leading global provider of commerce technologies, order management, fulfilment, customer care, and marketing solutions. . .” (Supply Chain Digital, 2015). eBay is a retail service provider that helps facilitate the process between the sellers and buyers of a marketed good or services. They provide the technology that enables the eBay community to do business, the security for the transactions to take place, and the controls to keep the processes efficient. eBay is also maintaining a steady flow of focused marketing strategies to align buyers with sellers.
The marketing platform used by eBay is mainly driven through their affiliates program. eBay affiliates can …show more content…
Why do you think eBay chose this commission structure? Could it be improved? How? eBay pays commission based on two types of events. The number of new active confirmed registered users (ACRU) added a placed a bid in 30 days, and commission on revenue of sales generated within 7 days (Edelman & Larkin, 2015). The schedule of payments for ACRUs starts at $25 for any between 0 and 49; yet, from 50 to 1,999 there is only a $3 increase to $28. The next step in the ACRU schedule is from 2,000 to 20,999 and pays $31, again only a $3 increase from the previous tier. The schedule for ACRUs favors low volume and seems to take advantage of the affiliates that are driving larger volumes. The commissions paid for actual purchases made within a 7 day period seems to be fair. The issue that surrounds the commission on purchases made is the number of days in which the purchases needs to happen. If a sale is made by a buyer that was driven to eBay’s site and makes a purchase should have a longer time frame for the initial purchase to
The marketing platform used by eBay is mainly driven through their affiliates program. eBay affiliates can …show more content…
Why do you think eBay chose this commission structure? Could it be improved? How? eBay pays commission based on two types of events. The number of new active confirmed registered users (ACRU) added a placed a bid in 30 days, and commission on revenue of sales generated within 7 days (Edelman & Larkin, 2015). The schedule of payments for ACRUs starts at $25 for any between 0 and 49; yet, from 50 to 1,999 there is only a $3 increase to $28. The next step in the ACRU schedule is from 2,000 to 20,999 and pays $31, again only a $3 increase from the previous tier. The schedule for ACRUs favors low volume and seems to take advantage of the affiliates that are driving larger volumes. The commissions paid for actual purchases made within a 7 day period seems to be fair. The issue that surrounds the commission on purchases made is the number of days in which the purchases needs to happen. If a sale is made by a buyer that was driven to eBay’s site and makes a purchase should have a longer time frame for the initial purchase to